Auto Repair Articles ? Electrician Training and Business Finances

Oct 08 2011

These items are most important and are not offered in electrician courses or through your electrician training.

To be able to set up a bank account while in the name of your company, you will need to provide the business registration documents of your electrician business along with some personal identification. Be mindful that when choosing a bank, it is best to shop around rather than jump with the first convenient opportunity. Each bank with offer a variety of accounts with various fees, so be mindful of what you are able to manage. Personally, I prefer banking with credit unions because you will become a shareholder even if you only have one hundred dollars in the account.

All revenues received and expenses paid out by your electrical company must go through this account. Do not combine your personal funds using the funds within this account. Pay your entire company?s bills through this account. Do not use the business account for any personal purposes. If you start this account with your own personal funds, lend these funds to your new company by way of a written loan agreement that pays interest; this is a legitimate business expense that you can can reimburse yourself.

One vital item that will need on-going attention is to keep track on your money. If you fail at doing this, then how on earth are you supposed to earn a profit if you don?t even care to invest some time in to it? Again, this is not something you learned at your electrician training or online courses.

Start early and get into the routine of collecting and recording all of your company?s revenues and expenses. This can be done very easily using a spreadsheet. Find an hour a week to record your expenses, file receipts, updated project expenses. In the long run and come tax time, you will thank yourself. Plus, if you show an accountant one spreadsheet file rather than a box full of receipts, this might drastically reduce the cost of accounting for your electrician business.

Alternatively, develop a working relationship with a CPA who will do all of your books, ready your monthly (or other time frame) cash flow statement, profit and loss statement, balance sheet, and prepare your required annual tax returns. You can do this accounting work yourself in case you are so inclined, however your time is more valuable being used to manage your business and making it grow and be successful. Strongly consider hiring someone to take proper care of your accounting process.

Find the best business articles at Electrician Training and Courses. We offer the best tools for Individuals looking for a career and Electrician Training or Courses.

Leave a Reply

You must be logged in to post a comment.

Source: http://autorepairarticles.com/2011/10/08/electrician-training-and-business-finances

jacqueline kennedy jackie o john kennedy jr john kennedy jr machine gun preacher machine gun preacher austin city limits